The deal was supposed to close July 31. Margaret Liao of Plymouth, the prospective buyer identified in court records, said Wednesday that the sale had not yet been finalized and might not happen at all.

"It's 50-50," said Liao, adding that she retired from restaurant industry five years ago. "It might not be the right time for me to get into the business."

The restaurant's parent company, Santorini Y Not Inc., filed for bankruptcy reorganization in November, court records show. The company listed debts between $1 million and $10 million to as many as 99 creditors. Its reported assets were in the same range. The company had at least 20 unsecured creditors, the largest being Minnwest Bank Metro in Eagan, which claimed it was owed $2.9 million.

The case was dismissed in June after Nicklow signed an asset purchase agreement with Liao, according to an affidavit filed in Minnesota's U.S. Bankruptcy Court. The total purchase price is not listed in the affidavit.

As part of the agreement, Santorini Y Not would get $10,000 in cash. Liao was to sign a 10-year lease for the restaurant with the current landlord (Technology Drive LLC, according to Hennepin County property records), paying base rent that would not exceed $30,000 a month. The agreement also gave her an option to buy the premises for $3.3 million within the first three years. Liao also had the right to match any offer Nicklow received from a third party as long as the lease was in effect.

As part of the deal, Nicklow accepted a non-compete clause, prohibiting him from owning or operating a bar or restaurant within 20 miles of the location for the next five years. He was also to provide consulting services for three months after the closing date. Liao agreed to pay an extra $75,000 for the non-compete and consulting.